Explain portfolio''s new beta be after transactions

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You have a $ 2 million portfolio consisting of $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling $100,000 worth one stock with a beta of 0.9 and using the ensues to purchase another stock with a beta of 1.4. What will the portfolio's new beta be after these transactions?

Reference no: EM13111406

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